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Norway 2.3 Trillion Sovereign Wealth Fund May Lift Ban on Western Defence Stocks
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CNBC TV18•17-10-2026, 09:55
Norway 2.3 Trillion Sovereign Wealth Fund May Lift Ban on Western Defence Stocks
- •Norway's 2.3 trillion sovereign wealth fund, the world's largest, is considering ending its long-standing ban on investing in Western defence companies.
- •An independent Gjedrem committee submitted a review recommending a radical policy shift to allow investments in defence firms as geopolitical risks rise.
- •Current ethical guidelines prohibit investments in companies like Boeing and Lockheed Martin due to their involvement in nuclear weapon manufacturing.
- •Under the new proposal, the fund could invest in nuclear-weapon component makers if they are domiciled in NPT nuclear-weapon states allied with Norway.
- •Norway's Finance Ministry will propose a new ethics framework in a spring white paper, with a parliamentary vote expected in mid-2027.
Key Questions Answered
An independent Gjedrem committee recommended a radical change to the fund's ethical framework after reviewing geopolitical risks and arguing that Norges Bank must be prepared for situations where conflicts escalate into war.
While the nuclear weapons exclusion is retained, its scope would change to allow investments in companies domiciled in a nuclear-weapon state under the NPT that is allied with Norway, enabling the reinclusion of several European and American manufacturers.
Norway's Finance Ministry will propose a new ethics framework in a white paper during the spring, and parliament is expected to vote on it in mid-2027.
